What explains Coinbase's transaction revenue volatility since 2022?

Coinbase's transaction revenue has experienced volatility since 2022 due to several factors related to the cryptocurrency market and market maturity: 1. **Market Maturity and Decreased Volatility**: The cryptocurrency market has become more mature, leading to less erratic price swings. This shift reduces the volatility that was a primary attraction for many investors, thereby impacting Coinbase's revenue. 2. **Trading Volume and Cryptocurrency Prices**: Coinbase's transaction revenue is closely tied to trading volume and cryptocurrency prices. Lower trading volume and cryptocurrency price declines have pressured its trading volume and fee-based revenue. For instance, the trading volume of Bitcoin, which significantly contributes to Coinbase’s trading-fee revenue, has been subdued since the cryptocurrency’s all-time highs in March. 3. **Diversification of Revenue Sources**: To mitigate the impact of decreased trading-fee revenue, Coinbase has diversified its revenue sources. This includes revenue from sources other than trading fees, such as revenue share on stablecoins and revenue from its Base blockchain. The growth of its non-trading businesses, like its Base sequencer fees, has reduced some of the volatility of its results, though it remains a key driver of Coinbase’s results. In summary, Coinbase's transaction revenue volatility since 2022 is primarily due to the maturation of the cryptocurrency market, leading to decreased volatility and lower trading volumes, alongside the impact of cryptocurrency price fluctuations. The company's efforts to diversify its revenue sources have helped mitigate some of these impacts.